Production

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Average Product
Quantity of output per unit of factor input
1 of 8
Law of diminishing returns or variable proportions or marginal productivity
If increasing quantities of a variable input are combined with a fixed input, marginal product and then average product of variable input will decline.
2 of 8
Long Run
Time Period when all factor inputs can be varied, but state of technology remains constant.
3 of 8
Marginal Product
Addition to output produced by an extra unit of input.
4 of 8
Returns to Scale
Change in percentage output resulting from a percentage change in all factors of production
5 of 8
Short Run
Time Period when at least one factor input to production process cannot be varied
6 of 8
Total Product
Quantity of output measured in physical units produced by a given number of inputs over a period of time.
7 of 8
Very Long Run
Time Period when state of technology may change.
8 of 8

Other cards in this set

Card 2

Front

If increasing quantities of a variable input are combined with a fixed input, marginal product and then average product of variable input will decline.

Back

Law of diminishing returns or variable proportions or marginal productivity

Card 3

Front

Time Period when all factor inputs can be varied, but state of technology remains constant.

Back

Preview of the back of card 3

Card 4

Front

Addition to output produced by an extra unit of input.

Back

Preview of the back of card 4

Card 5

Front

Change in percentage output resulting from a percentage change in all factors of production

Back

Preview of the back of card 5
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